Just Arrived – New Stock Pick: Blockbuster, Inc. (BBI)

Speculative Premier Turn-Around Play!

We don’t believe the sun is setting on Blockbuster!

January 23, 2009

SpeculatingStocks.com Stock Pick: Blockbuster, Inc. (BBI)

Stock Price: $0.40

Blockbuster
Inc. is a leading global provider of rental and retail movie and game
entertainment. The company provides customers with convenient access to
media entertainment anywhere, any way they want it – whether in-store,
by-mail, through vending kiosks or digitally downloaded directly to
their family room or mobile device.

BBI
is a speculative play that holds big potential as a premier turn-around
play. Many investors have followed Blockbuster’s troubles as Netflix
and others have risen to take market share.

It
is stunning that a brand name like Blockbuster could now be trading at
under a $100 million market cap, specifically around a $77 million
market cap. Blockbuster’s CEO has even been quoted, “We must ‘Adapt or
Die.’

We believe BBI will adapt and
they have already taken steps that we believe will lead to investor
returns as 2010 progresses. BBI has entered the video self serve kiosk
space, movie delivery through mail, digital delivery and has been
closing underperforming stores and even attempting to renegotiate lease
structures.

BBI earnings are due out
on Wednesday, February 24th. We believe bad news is already priced in
with the company revising fiscal 2009 guidance already. We believe we
could hear more initiatives out of BBI on how they plan to continue to
turn Blockbuster around.

The CEO of BBI, Jim Keyes helped turn around 7-Eleven.

If
BBI can’t complete this turnaround then it’s a complete failure on the
part of BBI’s CEO and upper management. We’re betting BBI turns it
around and sees its stock price improve as prospects for Blockbuster
improve.

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